MIRA INFORM REPORT

Report No. :	508032
Report Date :	12.05.2018

IDENTIFICATION DETAILS

Name :	COPPEL, S.A. DE C.V.
Registered Office :	Calle República No. 2855 Pte. Colonia Recursos Hidráulicos Culiacán, SI 80105
Country :	Mexico
Financials (as on) :	2016 (Summarized)
Date of Incorporation :	1941
Legal Form :	Sociedad Anonima De Capital Variable
Line of Business :	Subject sells home furniture and clothing products online
No. of Employees :	84,361

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
Mexico	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

MEXICO - ECONOMIC OVERVIEW

Mexico's $2.4 trillion economy – 11th largest in the world - has become increasingly oriented toward manufacturing since the North American Free Trade Agreement (NAFTA) entered into force in 1994. Per capita income is roughly one-third that of the US; income distribution remains highly unequal.

Mexico has become the US' second-largest export market and third-largest source of imports. In 2016, two-way trade in goods and services exceeded $579 billion. Mexico has free trade agreements with 46 countries, putting more than 90% of its trade under free trade agreements. In 2012, Mexico formed the Pacific Alliance with Peru, Colombia, and Chile.

Mexico's current government, led by President Enrique PENA NIETO, has emphasized economic reforms, passing and implementing sweeping energy, financial, fiscal, and telecommunications reform legislation, among others, with the long-term aim to improve competitiveness and economic growth across the Mexican economy. Since 2015, Mexico has held public auctions of oil and gas exploration and development rights and for long-term electric power generation contracts. Mexico has also issued permits for private sector import, distribution, and retail sales of refined petroleum products in an effort to attract private investment into the energy sector and boost production.

Since 2013, Mexico’s economic growth has averaged 2% annually, falling short of private-sector expectations that President PENA NIETO’s sweeping reforms would bolster economic prospects. Growth is predicted to remain below potential given falling oil production, weak oil prices, structural issues such as low productivity, high inequality, a large informal sector employing over half of the workforce, weak rule of law, and corruption. In 2018, Mexico’s economy will be vulnerable to uncertainty surrounding the future of NAFTA—because the US is its top trading partner and the two countries share integrated supply chains—and to potential shifts in domestic policies following the inauguration of a new a president in December 2018.

Source : CIA

Statutory Information
Order	COPPEL
Address in the order	CP 21100 MEXI CALLI BC MEXI CO, Mexico The address in the order corresponds to a branch of the company.
Legal Name	COPPEL, S.A. DE C.V.
Trade Name	COPPEL
ID	RFC
ID Details	COP920428Q20
Creation Date	1941
Incorporation Date	1992
Legal Address	Calle República No. 2855 Pte. Colonia Recursos Hidráulicos Culiacán, SI 80105 Mexico
Operative Address	Calle República No. 2855 Pte. Colonia Recursos Hidráulicos Culiacán, SI 80105 Mexico
Telephone	(52) 6677594200
Fax	(52) 6677594200
Legal Form	SOCIEDAD ANONIMA DE CAPITAL VARIABLE
E-Mail	informacion@coppel.com
Registered In	MEXICO
Website	www.coppel.com
Contact	Francisco Agustín Coppel Luken, Chairman and Chief Executive Officer
Staff	84,361
Activity	Department Stores

Banks
Name of Bank	Reported Amount
Santander	NA
Inbursa	NA
Scotiabank	NA
BanCoppel	NA
Description	The company does not make its banking data public.

History
History	The company was founded in 1941 by Enrique Coppel Trejo.
Key Developments	Coppel began with its creator Enrique Coppel Tamayo who set up shop in Mazatán, later moving to Culiacán. By 1990 the chain had 24 stores. In 2002 it bought Canadá shoe stores. This allowed Coppel to become one of the main distributors in Mexico not only of shoes but cellphones, clothing, televisions and furniture. The previous name of the company was Almacenes Coppel S.A. The business of 24 stores that was the group in 1990, has become a conglomerate with 402 points of sale, including the 153 shoe stores Canada, brand that they bought in 2002. This allowed Coppel to become one of the main distributors, not only of footwear, but also of cell phones, clothes, televisions and furniture. For 2006 Coppel opens 93 stores, has 376 Coppel branches and 204 Coppel Canada; in May, Afore Coppel begins. Today it is one of the 100 largest companies in the country, according to the Expansion ranking, with sales higher than those of stores such as Sears, El Palacio de Hierro and Famsa, and banks such as Santander, Inbursa and Scotiabank. In 2015, it buys the 51 Viana stores to convert them into Coppel stores with an investment of $ 2,500 million pesos. According to Deloitte, Coppel is ranked 156th-largest retailer in the world with sales in fiscal year 2015 of 6,156 million USD.
Parent Company	GRUPO COPPEL, S.A.DE C.V. was founded in 2006.

Principal Activity

General Description

Coppel S.A. De C.V. sells home furniture and clothing products online in Mexico.

Service/Product Description

It operates stores that provide home appliances, such as refrigerators, stoves, washers, mini splits, air conditioners, fans, coolers, dryers, heaters, sewing machines, hoods, and centrifuges; decoration, kitchen, and room service products; and shoes, perfumes, health and beauty products, watches, jewelry, bags, accessories, clothing, tools, luggage, electronic products, and automotive and sporting goods. The company also offers its products online. In addition, it provides personal credits and micro-credits.

Sales

Wholesale and Retail

Operations Area

National and International

Imports From

Italy, China and Ecuador

Export To

USA and Argentina

Employees

84,361

Payments With Suppliers

Regular

Brands
Brand	Comments
TELCEL	NA
APPLE	NA
MOVISTAR	NA
SAMSUNG	NA
CANON	NA

Clients
Name of Client	Country	Comments
Coppel Corp.	USA	NA
Coppel S.A.	ARGENTINA	NA

Comments

The company`s main clients include national and international companies, as well as private customers.

Suppliers
Supplier Name	Country	Comments
ITALIAN SHOEMAKERS ITALIA SRL	ITALY	NA
Beijing Lee Port Trade Ltd.	CHINA	NA
GUANGZHOU YAQITE INDUSTRIAL CO., LTD.	CHINA	NA
Ceramica Andina Ca	ECUADOR	NA

Comments

NA

Location
Headquarters	Calle República No. 2855 Pte. Colonia Recursos Hidráulicos Culiacán, SI 80105 Mexico
Branches	The company operates with more than 1100 stores. CLL PLAZA CACHANILLA S/N 22, CENTRO CIVICO , MEXICALI , BC , C.P.21000, Mexico.

Group Structure and Subdiary Companies
Listed at the stock exchange	NO
Capital	NA
Shareholders (%)	This is a private company. The company does not disclose information on shareholders. The following information has been obtained through private sources and could not be confirmed: The company is a subsidiary of: Grupo Coppel S.A. de C.V. MAIN ACTIVITY: Grupo Coppel S.A. de C.V., through its subsidiaries, provides banking services to individuals and companies. The company operates through consumer and commercial loans segment. It offers deposits, loans, debit and credit cards, and trust agreements, as well as and provides securities transactions. The company also offers mortgage-lending services that include residential mortgages and construction loans. In addition, it sells home furniture and clothing products online in Mexico. The company operates stores that provide home appliances, such as refrigerators, stoves, washers, mini splits, air conditioners, fans, coolers, dryers, heaters, sewing machines, hoods, and centrifuges; decoration, kitchen, and room service products; and shoes, perfumes, health and beauty products, watches, jewelry, bags, accessories, clothing, tools, luggage, electronic products, and automotive and sporting goods. It also offers its products online. In addition, it provides personal credits and micro-credits. RFC: GCO060918AQ9 ADDRESS: Calle República No. 2855 Pte. Colonia Recursos Hidráulicos Culiacan, SI 80105 Mexico TELEPHONE: 52 667 759 4300 MANAGEMENT: Agustín Coppel Luken, Chairman and Chief Executive Officer
Management	Francisco Agustín Coppel Luken, Chairman and Chief Executive Officer Carlos Alberto Castro Vega, Finance Director and Secretary Manuel Ramón García Félix, Commercial Director Agustín Coppel Gómez, Senior Merchandiser Angie Lopez, Sales Mario Sergio Estrada Campos, Branch Manager Javier Alejandro Sánchez González, Technician Francisco Javier Najera Hermosillo, Quality Manager Sergio Félix Niebla, Development Manager (Training) Damian Fernandes, Sales Cesar Caballos, Branch Manager
Subsidiary Companies	NA
Related Companies	This company currently has branches outside of Mexico in the countries of Argentina and Brazil. Sakly SA de CV Mexico Coppel America SA de CV Mexico Coppel Capital SA de CV. Mexico Coppel S.A. Argentina LOJAS COPPEL LTDA Brazil

Financial Information
General Description	The company does not make its financial statements public. The following information has been provided by private sources:
Year/Currency	2016 USD
Sales	6,100,000,000
Income	850,000,000
Imports	Foreign trade in the last 5 years: Imports:: 66,752 US$: 255,107,940
Exports	No records found
Import Fob Dollar There are not Import Fob Dollar informed
Export Fob Dollar There are not Export Fob Dollar informed

Legal Filings
Lawsuits	Edomex Labor Court: Special Meeting Number Three - Texcoco Board File: 1097/2013 Actor: JOSE LUIS MUÑOZ LUNA Defendant: COPPEL, S.A. DE C.V. I. Trial: Laboral Texcoco Date: 06/20/2016 JOSE LUIS MUÑOZ LUNA VS. COPPEL, S.A. DE C.V. I. NOTICE TO THE PARTIES AGREEMENT OF DATE 16-06-16 WHERE NOTIFI-CAR IS ORDAINED TO THE ACTING PARTY BY PUBLICATION IN THE LABOR BULLETIN OF THIS BOARD THE AWARD DICTATED IN THE PRESENT JUDGMENT, THEREFORE IS NOTIFIED THE PART ACTORS THE AWARD OF DATE 22-03-16. JOSE LUIS MUÑOZ LUNA VS. COPPEL, S.A. DE C.V. I. NOTICE TO THE PARTIES AGREEMENT OF DATE 16-06-16 WHERE NOTIFI-CAR IS ORDAINED TO THE ACTING PARTY BY PUBLICATION IN THE LABOR BULLETIN OF THIS BOARD THE AWARD DICTATED IN THE PRESENT JUDGMENT, THEREFORE IS NOTIFIED THE PART ACTORS THE AWARD OF DATE 22-03-16. RECORD NUMBER: J.8 / 374/2014 THIRD COURT COLLEGIATE IN CIVIL AND LABOR MATTERS OF THE TENTH SIXTH CIRCUIT. Direct protection 653/2013. Coppel S.A. of C.V. October 31, 2013. Unanimity of votes. Speaker: Francisco González Chávez. Secretary: María Guadalupe Mendiola Ruiz Incident of Incompetence in Reason of Territory 502 / 13-01-02-5 / 841/13-S2-09-06, in the administrative contentious trial promoted by Coppel, S.A. de C.V., from the Second Regional Chamber of the Northeast I. Speaker: Magistrate Víctor Martín Orduña Muñoz, Secretary: Mr. Michael Flores Rivas.
Trademarks	Todo con facilidades Su crédito Coppel vale más que el dinero Qué fácil es estrenar en Coppel Coppel mejora tu vida
Patents Registered	No records found
Renewals	No records found

Summary

Summary

Founded in 1941, Coppel S.A. De C.V. sells home furniture and clothing products online in Mexico. The company has approximately 84,361 full-time employees and generates an estimated USD $6,144.46 million in annual revenue. The company imports from Italy, China and Ecuador and exports to USA and Argentina, operating within national and international markets. The company is a subsidiary of Grupo Coppel S.A. de C.V. This has been an ACTIVE company incorporated in MEXICO in 1992.

Risk Information
Debts	Controlled
Payments	Regular
Cash Flow	Normal
State	ACTIVE
Interview
First Name	Carmela
Position	Operator
Comments	The person contacted confirmed legal name, trade name, address, website, telephone and principal activity. She also explained that the company has many branches in Mexico, as well as international offices. She asked the reason of the call and refused to provide further information through the phone. She transferred the call but the person contacted was not available to provide more details about the company.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 67.22
UK Pound	1	INR 90.88
Euro	1	INR 80.99
MXN	1	INR 3.47

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	PRA
Report Prepared by :	KET

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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